Lactic acid is one of the most important carboxylic acids used in several end-user industries due to its wide range of chemical properties. It is commercially manufactured using two production processes: chemical and microbial processes. The chemical process uses petroleum-based raw materials in the manufacture of lactic acid and has limitations in terms of application array. The microbial process (through fermentation) is the most widely used production process as it yields lactic acid of the highest purity, which is mostly required by downstream markets. In the microbial process, lactic acid primarily uses raw materials such as corn, sugar, cassava, wheat, and rice. It is chiefly used in the production of biodegradable plastics such as polylactic acid. Application of lactic acid in the biodegradable plastics segment is likely to boost the lactic acid market in the next eight years. Additionally, the usage of lactic acid in food and beverage, personal care, and pharmaceutical as an essential ingredient is expected to raise the demand for lactic acid during the forecast period.

Biodegradable plastics was the largest end-user segment of the lactic acid market with a share of over 35% in 2014. Biodegradable plastics is also estimated to be the fastest growing segment of the lactic acid market, expanding at CAGR of 13.5% between 2015 and 2023. Food and beverage and personal care end-users are also anticipated to hold significantly high share of the global lactic acid market in the next few years. Increasing demand for sustainable alternatives to conventional plastics is propelling the demand for polylactic acid and indirectly, the demand for lactic acid.

Based on regions, the global lactic acid market has been bifurcated into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America was the largest regional market for lactic acid, constituting over 30% share in 2014. Increasing demand for bioplastics is projected to drive the lactic acid market in North America in the next few years. Furthermore, Asia Pacific is likely to be the fastest growing region in the global lactic acid market during the forecast period. Rising environmental awareness and problems associated with dumping of plastics is expected to act as one of the prime reasons for growth in the bioplastics market and indirectly, the lactic acid market. The lactic acid market in North America is estimated to expand at a steady rate during the next six years due to slow but steady recovery of the economy in the U.S. The lactic acid market in Latin America and the Middle East & Africa is also estimated to grow at a moderate pace in the next few years due to rising demand for polylactic acid in the packaging industry in the Middle East & Africa and Latin America.

Polylactic acid is one of the most promising bioplastics and serves as an effective alternative to conventional petroleum-based plastics. It is commercially manufactured using two production processes: condensation and ring-opening process. The condensation process results in a low-weight polymer as an outcome, which has limitations in terms of application array. The ring-opening process is the most widely used production process as it yields polylactic acid of highest commercial value, which is primarily required by packaging, electronics, and textile markets. Application of polylactic acid in the packaging segment is likely to propel the polylactic acid market in the next eight years. Furthermore, application of polylactic acid in electronics, textile, and biomedical as an essential ingredient is expected to increase the demand for polylactic acid during the forecast period.

Europe was the largest regional market for polylactic acid, constituting over 45% share in 2014. Increasing demand for bioplastics is projected to drive the market in North America in the next few years. Furthermore, Asia Pacific is likely to be the fastest growing region in the global polylactic acid market during the forecast period. Problems associated with dumping of plastics resulted in a ban on the usage of plastics. This, in turn, is projected to be one of the chief reasons for growth in the polylactic acid market. The lactic acid market in North America is anticipated to expand at a steady rate during the next six years due to slow but steady recovery of the economy in the U.S. The polylactic acid market in Latin America and the Middle East & Africa is also estimated to grow at a moderate pace in the next few years due to rising demand for polylactic acid in the packaging industry in the Middle East & Africa and Latin America.

Increasing demand for polylactic acid in the packaging industry is anticipated to drive the global polylactic acid market in the next few years. Emergence of bio-based plastics and increased usage of these plastics in the packaging of food and beverages is projected to provide opportunities for the polylactic acid market in the next six years. Besides this, the manufacture of lactic acid through alternative raw material sources such as lignocellulosic materials is expected to offer key opportunities to the lactic acid market during the forecast period. However, fluctuating raw material prices of lactic acid and stiff competition from available substitutes to polylactic acid are likely to hamper the market growth. Key manufacturers of lactic acid and polylactic acid include Corbion NV, NatureWorks LLC, Henan Jindan Lactic Acid Technology Co., Ltd., Archer Daniels Midland Company, Synbra Technology BV, Zhejiang Hisun Biomaterials Co., Ltd., Teijin Ltd., Galactic, and Futerro.

This report analyzes and forecasts the market for lactic acid and polylactic acid at the global, regional, and country level. The market has been forecast based on volume (Kilo Tons) and revenue (US$ Mn) from 2015 to 2023. The study includes drivers and restraints of the global lactic acid and polylactic acid market. It also covers the impact of these drivers and restraints on the demand for lactic acid and polylactic acid during the forecast period. Additionally, the report highlights opportunities in the lactic acid and polylactic acid markets globally and regionally.

The report includes a detailed value chain analysis, which provides a comprehensive view of the global lactic acid and polylactic acid markets. Porter’s Five Forces Model for both lactic acid and polylactic acid markets has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, wherein end-users are benchmarked based on their market size, growth rate, and general attractiveness.

The study provides a decisive view of the global lactic acid and polylactic acid markets by segmenting it in terms of end-user segment. Segments have been analyzed based on present and future trends. Regional segmentation includes the current and forecast demand for North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Furthermore, country-wise analysis has been carried out for individual regions.

The report provides the market size of lactic acid and polylactic acid for 2014 and forecast for the next six years. The global market sizes of lactic acid and polylactic acid are provided in terms of both volume and revenue. Market volume is defined in kilo tons, while market revenue is in US$ Mn. Market numbers are estimated based on key end-user segments of lactic acid and polylactic acid. Market size and forecast for end-user segments are provided in terms of global, regional, and country markets.

In order to compile the research report, we conducted in-depth interviews and discussions with a number of key industry participants and opinion leaders. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. We reviewed key players’ product literature, annual reports, press releases, and relevant documents for competitive analysis and market understanding. Secondary research includes a search of recent trade, technical writing, Internet sources, and statistical data from government websites, and trade associations and agencies. This has proven to be the most reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.

Primary research involves e-mail interactions, telephonic interviews, and face-to-face interviews for each market, category, segment, and sub-segment across geographies. We conduct primary interviews on an ongoing basis with industry participants and commentators in order to validate the data and analysis. Primary interviews provide firsthand information on market size, market trends, growth trends, competitive landscape, and outlook, etc. These help validate and strengthen secondary research findings. These also help develop the analysis team’s expertise and market understanding.

The report segments the global lactic acid and polylactic acid markets as follows:

Lactic Acid Market - End-user Analysis

Food and Beverage

Personal Care

Pharmaceutical

Biodegradable Plastics

Others (Including detergents, etc.)

Polylactic Acid Market - End-user Analysis

Packaging

Textile

Electronics

Automotive

Biomedical

Others (Including printing, etc.)

Lactic Acid and Polylactic Acid Market - Regional Analysis

North America

U.S.

Rest of North America

Europe

France

Germany

Italy

Netherlands

UK

Rest of Europe

Asia Pacific

China

Japan

ASEAN

Rest of Asia Pacific

Latin America

Brazil

Rest of Latin America

Middle East & Africa (MEA)

GCC Countries

South Africa

Rest of MEA

Upcoming Reports

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